Dont underestimate the Chinese and the Indians. They consistently find innovative ways to do business. If you close one door they will open another, unexpected one. If the government shut the tap on easy RMB funds, the traders have found another way to generate RMB liquidity !!! Clever.

3:29 pm May 20, 2011

SayItHowItIs wrote:

China has taken on super-capitalism. What the CCP says it represents is in paradox to what it is doing. Communism died in China in 1979 when Deng opened up China to the mercy of globalisation.

9:05 pm May 20, 2011

pug_ster wrote:

Doctored demand? Give me a break. Since more demand means higher price and they mostly import this stuff, so why do the Chinese companies want to intentionally pay more? Blame this problem on the London commodities market instead because they make this kind of false demand.

9:34 pm May 20, 2011

Reason wrote:

This article just illustrates one of the many ways that Beijing's capital controls are ineffective at controlling the economy. It is natural that people in China who have dealt with circumventing this government for more than 50 years are adept at finding loopholes.

11:14 pm May 20, 2011

On second thought wrote:

The whole article is nonsense. If you have the money to buy copper, who do you need borrow money in the first place? Why don't you invest in stock markets instead of buying the stupid copper? Prices of commodities fluctuate more than common stock.

3:44 pm May 21, 2011

Anonymous wrote:

leverage. In London, they just need to pay very little as margin because of the credit. Of course, there is interest produced in this process.
Compared to the interest rate 2-6% per month in China, it is much cheaper.

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